Markets · Chicago–Naperville–Elgin, IL MSA

Chicago Industrial Market Report

Bluebird CRE Research · As of 2026 Q1 · Data: CoStar Group, www.costar.com

The largest industrial market in the Midwest and a primary national distribution hub, with deep small-bay inventory across mature infill corridors.

5.4%
Vacancy
$10.07/SF
Asking Rent
$8.72/SF
NNN Rent
5.5M SF
Net Absorption (12 mo)
19.8M SF
Under Construction
8.2%
Market Cap Rate

Asking Rent / SF

2016–2026

Now $10.07 · +4.6% YoY

Vacancy Rate

2016–2026

Now 5.4%

Net Absorption (12 mo)

2016–2026

Now 5.5M SF

Annual figures through 2026 Q1. Source: CoStar Group, www.costar.com.

Market overview

As of 2026 Q1, Chicago industrial vacancy stands at 5.4% with asking rents near $10.07/SF. The market absorbed 5.5M SF over the trailing year, and investment sale pricing implies roughly a 8.2% cap rate. Those are the figures that frame how we underwrite here.

Bluebird's read

The largest industrial market in the Midwest and a primary national distribution hub, with deep small-bay inventory across mature infill corridors. Bluebird targets functional small-bay and IOS product here at a basis below replacement cost, with leasing and mark-to-market as the value-add levers.

Economy

Population
9.4M
Total employment
4.7M
Industrial employment
587,281
Median HH income
$94,393

Key submarkets

  • • I-55 Corridor
  • • O'Hare
  • • Joliet / Will County
  • • I-80 Corridor

Representative tenants

  • • Amazon
  • • UPS
  • • Walmart
  • • Target

Explore other markets

Columbus, OH
6.5% vacancy · $8.41/SF
Indianapolis, IN
7.6% vacancy · $7.71/SF
Milwaukee, WI
5.1% vacancy · $7.68/SF

Market data sourced from CoStar Group, www.costar.com (as of 2026 Q1); figures are point-in-time estimates and forecasts are not guarantees. Provided for informational purposes only and not an offer to sell securities. Past performance does not guarantee future results.

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